If you are having problems with images that are uploaded with Direct FTP and they appear corrupted, follow these instructions to correct the problem:
Download and install the latest version of Direct FTP.
Go into the Edit Menu > Preferences > Editor > Files Tab.
Under "Languange Color Scheme", choose "Default". You will then see this:
Remove *.* and replace it with .* (basically, you're just removing the first *) and click OK.
Restart the program.